One of India’s largest car manufacturers, Tata Motors has unveiled its grand plans in the field of electric vehicles (EVs). The company has high ambitions of having as many as 10 EVs in its portfolio in the next 5 years. Tata Motors is also looking to have 25% of its total car sales as EVs.
Tata Motors has already created a stronghold in the Indian EV space with its Nexon EV. The company has further strengthened its position by adding Tigor EV 2021 range this year. With this launch, Tata Motors has a humongous EV market share of 70% in India. The status is going to remain with Tata Motors as many of the well-known carmakers have yet not entered this futuristic arena.
Speaking about the plans that the company has for its EV business, Shailesh Chandra, President, Tata Motors, said that they are eyeing to have as much as 25% EVs in their car portfolio.
Some major milestones that Tata Motors is eyeing to achieve by 2025 are:
- Addition of up to 8 more EVs by 2025
- 25 in every 100 cars Tata sells to be EV by 2025
- Make large EV SUVs
With 2 popular EV models under its belt, Tata Motors is highly optimistic about its future. The company is mulling a major EV expansion and is looking to keep up with the latest trends in this industry. Factors such as new emissions norms, increasing demand for EVs from customers and decreasing battery prices are going to facilitate Tata Motors in achieving its objectives.
As part of their expansion strategy, Tata Motors is looking to go for the conversion route. Under this, they will launch the EV versions of their existing internal combustion engine (ICE) cars. The way it has been done with Nexon EV and Tigor EV. Opting for this strategy would allow the company to launch new products in a considerably low timeframe and satisfy the market’s selling EV demand. Once this works, the company would go for native EVs and pump in more investments into this business vertical.
Importantly it is learnt that the automakers have no short-term plans of building a dedicated EV platform. The company is not going to offer bigger batteries at the current price levels, rather they are looking to wait for the battery market to reach the inflexion point where the prices are affordable to the masses. Tata Motors is also well poised to take advantage of the future decrease in the battery prices to offer big EV SUVs.
According to the data given by the automaker, the demand for Nexon EV has increased 7 times since its launch in January 2020. In fact, in recent weeks, it has matched the demand for Nexon’s diesel variant. Tata is getting over 2,000 Nexon EV bookings per month now compared to 300 in 2020.
The major factors that have contributed to the Nexon EVs success are high fuel prices, positive word of mouth from the existing customers and the various government subsidies that are involved with buying an EV.